New aircraft owners and pilots cannot assume that aircraft renters insurance is included with flight school training or Fixed Based Operator (FBO) status. In fact, flight schools and airport authorities provide insurance to protect their aircraft and interests, not their students.
Continue reading to find out eight things you need to know about aircraft renters insurance and how the right policy can protect you from liability risks associated with owning, operating, and renting an aircraft.
1. Why You Need Aircraft Renters Insurance
Flying airplanes comes with some expected risks. Airport owners and facilities that rent planes to pilots do not always provide adequate insurance coverage. A typical flight school insurance policy may have physical damage coverage for their aircraft fleet, however it is very common for their policies to have high deductibles. Most flight schools will require aircraft renters insurance, including both liability and physical damage coverage (up to the limit of their policies deductibles)
It is not uncommon for an aircraft owner to pay a claim for damages caused by the student pilot but then sue the pilot for reimbursement of the damages. Therefore, it is wise to have a non-owned aviation renters insurance policy in place to cover yourself, your passengers, the rented aircraft, and anyone or anything else that may be damaged in the incident.
2. Why Aircraft Renters Insurance Is Important
Here are some examples of reasons why a pilot would need non-owned aircraft insurance:
- When flying an aircraft even if the aircraft owner is present (as a secondary policy)
- If the pilot is an FBO providing flight instruction in an owner’s aircraft
- If the pilot is a student taking flying lessons in an owner’s aircraft
- If a pilot is delivering an aircraft for someone else
- When borrowing or renting someone else’s plane
3. Aircraft Renters Insurance is Relatively Inexpensive
Non-owned aircraft insurance policies are straightforward, easy to understand, and budget-friendly. Pilots renting aircraft from flight schools, flying clubs, and other aircraft rental facilities can easily find a policy that meets their requirements and exact policy needs.
Aircraft renters insurance policies, such as BWI Fly, include standard aircraft liability coverage, aircraft physical damage coverage, and hull coverage. Aircraft liability starts at $250,000 per occurrence and is limited to $25,000 per passenger. Aircraft physical damage coverage can be added to an aircraft renters insurance policy in amounts between $5,000 and $200,000.
To find coverage that meets your needs, you can get a non-owned aircraft insurance quote by simply completing the price quote form on BWI Fly’s website.
4. Non-Owned Aircraft Insurance Coverages
Typical aircraft renters insurance covers pilots with these required protections against damages:
- Property damage liability covers damage to other persons’ property, but not damage to the aircraft rental.
- Bodily injury liability covers injury to aircraft passengers and bystanders caused by an accident. If a pilot is sued, bodily injury liability also covers legal fees incurred in defense of covered claims.
- Aircraft damage liability (ADL) is also known as hull coverage and covers damage to an aircraft itself.
5. Types of Aircraft Damage Liability
There are three types of optional aircraft damage liability that non-owned aircraft insurance covers:
- Ground and flight liability covers any type of hazard to a plane, including disappearance, that is not included in the general policy. The aircraft can be located anywhere and still be covered.
- Not in flight liability covers damage to a plane when it is on the ground, whether it is parked or moving.
- Not in motion liability covers damage to an aircraft while on the ground and not moving.
6. Aircraft Renters Insurance and Flying Clubs
A flying club is an organization run by its members who are pilots. A major draw of flying clubs is that they help defray the high costs of aircraft ownership by giving pilots group benefits such as insurance coverage. Before joining a flying club, be sure to find out what types of coverage the club offers and whether pilots are required to purchase additional coverage.
Some flying clubs mandate that their members have individual aircraft renters insurance, while other clubs include the cost of insurance of the club’s group insurance policy into the membership fees or the cost of aircraft rentals.
7. How Much Aircraft Renters Insurance Do You Need?
While renting an aircraft, basic legal liability protects pilots against bodily injury and property damage claims. Since damages to the rented aircraft are not included in legal liability coverage, physical damage coverage to the rented aircraft is available for non-owned planes. Most insurers recommend purchasing the highest amount of legal liability coverage that pilots can afford.
Physical damage coverage will depend on the agreed value of the aircraft and the specifics of the rental agreement. Aircraft repair can be costly, so physical damage coverage is highly recommended.
8. How To Keep Aircraft Renters Insurance Expenses Down
Aircraft renters insurance requires that pilots pay a deductible to the owner of the plane or the rental facility in the event of an accident. A deductible is an out-of-pocket expense and can be costly based on the amount set by your policy. Deductibles must be paid regardless of who is at fault.
Final Take
Finding the right non-owned aircraft renters insurance policy can be challenging if you are not sure what is required to keep you up in the air. Remember that aircraft renters insurance coverages will vary based on a few items:
- The size and type of aircraft that you insure
- The number of passengers on the plane
- The pilot’s hours of flight experience
BWI offers the best overall aviation insurance in 2022 as rated by Investopedia and is consistently ranked one of the nation’s top aircraft renters insurance companies.
Don’t hesitate to purchase your aircraft renters insurance policy today. It’s affordable, quick, and easy to set up, and you can take off right away with peace of mind.
Why Shop for Aircraft Insurance at BWI Aviation Insurance Agency?
There are a lot of variables and factors in obtaining aircraft insurance, particularly when deciding how much coverage fits your bill. Before settling on a best-fit figure, you must select the appropriate aircraft coverage type, factor in your flight hours, aircraft type, and passenger load. This is hectic even when you have time.
At BWI, we understand the complexity of shopping for aircraft insurance, which is why we simplify and streamline the entire process for our customers. When your trust us to provide you with aircraft insurance, you’ll get low rates, fast quotes, and coverage you can always count on.
Call 800.666.4359 today for a free Airplane Insurance Quote or Click Here to submit a quote request online.
BWI is the Nation’s Leader in Aviation Insurance, with offices based in Corona, CA and Anchorage, AK.
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